In regions with a less favorable economic environment, the business prospects of small and medium-sized banks are not optimistic, and investors' willingness to invest is low. In contrast, small and medium-sized banks with higher management levels and outstanding performance are generally welcomed by the market in terms of equity transfers.

Small and medium-sized banks should leverage their own advantages and establish their service positioning, engaging in differentiated competition with other banks to enhance their operational strength.

This year, bank equity has frequently appeared on major auction platforms. A search for "bank equity" on the Alibaba judicial auction platform revealed that between August 1st and September 30th, more than 1,000 bank equity auctions were either ongoing or about to start. Specifically, the auction targets were mainly focused on the equity of city commercial banks, rural commercial banks, and private banks, which are considered small and medium-sized banks. Some bank equities received little interest after being listed, and even experienced unsold auctions.

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Wang Pengbo, the chief analyst of the financial industry at Botong Consulting, stated that the phenomenon of some bank equities being ignored and frequently unsold is mainly because most of the auctions involve small and medium-sized city commercial banks and private banks, which have relatively dispersed equity and less say, while the threshold for buyers is relatively high.

The reporter noticed that some bank equities were sold at a discount, and even some bank equities were auctioned starting at "1 yuan." Despite this, there were many onlookers but few bidders for small and medium-sized bank equities, and some equities ultimately went unsold due to "no bids." For example, since the end of July, a certain rural commercial bank has initiated multiple rounds of auctions for its debt-offsetting assets—certain rural commercial bank shares, with the starting price being lowered several times, but still receiving no bids.

"Many factors affect the results of bank equity auctions or transfers, and it cannot be generalized," said Dong Ximiao, the chief researcher at China United Research. The uncertain factors in profit growth and asset quality of some small and medium-sized banks can affect the enthusiasm of investors to participate in bank equity auctions. The dispersed equity of small and medium-sized banks, due to historical reasons, can also affect investor expectations and subsequently affect equity transfers.

Lou Feipeng, a researcher at China Postal Savings Bank, analyzed that the current banking industry faces significant pressure due to factors such as low net interest margins. Some small and medium-sized banks that have not gone public are affected by their smaller scale, weaker risk resistance, and higher dependence on regional economic development, facing even greater operational pressure, and their equity has limited overall appeal to investors.

However, not all bank equity transfers are met with a cold response. For example, 6361 shares of equity in Zhejiang Rui'an Rural Commercial Bank Co., Ltd. received 238 bids, with a starting price of 19,148 yuan, and the final transaction price was 180,348 yuan. The announcement showed that 24 people registered for this transfer, 115 people set reminders, and it was viewed 4,451 times.

Why do small and medium-sized bank equity auctions show uneven cold and hot phenomena? Industry insiders believe that from the perspective of investors, there is a divergence in the value judgment of bank equity. At present, preventing and resolving risks in small and medium-sized financial institutions is an important issue for the high-quality development of China's financial industry, and some investors maintain a wait-and-see attitude towards holding equity in small and medium-sized banks.

Dong Ximiao stated that the current market transactions of small and medium-sized bank equity show differentiation. From the perspective of the banks' own operations, influenced by internal and external environments, the operational conditions of the banking industry, especially small and medium-sized banks, are uneven. In some regions with a less favorable economic environment, the business prospects of small and medium-sized banks are not optimistic, and investors' willingness to invest is low, leading to a cold response to some small and medium-sized bank equity auctions. On the contrary, some small and medium-sized banks with higher management levels and outstanding performance are generally welcomed by the market for their equity transfers.Lou Feipeng believes that the issues faced by small and medium-sized banks in equity auctions reflect underlying problems such as corporate governance, management systems, risk control, and potentially unreasonable equity structures. To enhance the attractiveness of their equity to investors, these banks need to focus on improving their corporate governance structures and enhancing their operational management capabilities.

It is noteworthy that regulatory authorities have placed great emphasis on the normativity of corporate governance and the stability of operations in small and medium-sized banks in recent years. Recently, Xiao Yuanqi, Deputy Director of the State Financial Regulatory Administration, stated that regardless of whether they are major or minor shareholders, they should support financial institutions in making decisions in accordance with corporate governance procedures and requirements. The stable operation of small and medium-sized financial institutions is, in fact, the greatest responsibility to their shareholders. When operations are stable, the value of shareholders and stakeholders will also be realized.

Small and medium-sized banks should leverage their unique advantages and establish a clear service positioning to engage in differentiated competition with other banks, thereby strengthening their operational and developmental capabilities. Wang Pengbo believes that, on one hand, small and medium-sized banks should continuously optimize their equity structure and enhance their refined management capabilities; on the other hand, they should improve their ability to serve the local real economy and promote the standardized development of corporate governance.